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PR Newswire
5 Sept. 1997
LAKE FOREST, Ill., Sept. 5 /PRNewswire/ -- Brunswick Corporation
said that initiatives underway to streamline its operations and
improve global manufacturing costs are expected to result in pre-tax savings
aggregating $55 million to $60 million over the next three years. To account
for costs associated with these actions, the company said it would take a pre-
tax charge of approximately $95 million in the third quarter ending Sept. 30,
1997. On an after-tax basis, the charge is equivalent to approximately $60
million, or $0.60 per share.
Commenting on actions covered by the charge, Brunswick Chairman and CEO
Peter N. Larson said, "After considering current and expected market
conditions for personal watercraft, we elected to discontinue our efforts in
this area. In addition, we will close a boat manufacturing plant in Ireland,
outsource the manufacture of certain components in our bowling division,
centralize European marketing and customer service in our marine division,
consolidate fishing reel manufacturing into one plant in Tulsa, and
consolidate other operations to optimize our manufacturing and distribution
processes. Cost savings from these initiatives will allow us to strengthen
our support of new product introductions, to make further cost refinements to
our direct fuel injection technology for outboard engines and to improve
manufacturing efficiencies and earnings in both our marine and recreation
segments. All of these steps are intended to support Brunswick's position as
the leading global consumer products company serving the active recreation
markets with number-one brands in fishing, camping, biking, bowling, fitness
equipment, pleasure boating and marine propulsion.
The company said that Marine segment projects accounted for approximately
three quarters of the charge and Recreation segment programs accounted for the
balance. Of the estimated $95 million charge, about 45 percent relates to
costs associated with asset write-downs and dispositions, and approximately 30
percent covers estimated severance costs.
Headquartered in Lake Forest, Illinois, Brunswick is a multinational
company serving outdoor and indoor active recreation markets with consumer
products that include such leading brands as Zebco and Quantum fishing reels
and reel/rod combinations; American Camper and Remington camping gear; Igloo
coolers and ice chests; Mongoose, Roadmaster and Ride Hard bicycles; Brunswick
bowling and family entertainment centers, equipment and consumer products;
Brunswick billiards tables; Life Fitness cardiovascular and strength training
equipment; Sea Ray, Bayliner and Maxum pleasure boats, Baja high-performance
boats, Boston Whaler and Trophy offshore fishing boats; Mercury, Mariner and
Force outboard engines and MerCruiser sterndrives and inboard engines.
The estimated cost savings resulting from this charge are forward looking
statements, as defined by the Private Securities Litigation Reform Act of
1995, and involve certain risks and uncertainties that may cause actual
results to differ materially from expectations as of the date of this
announcement. These risks include, but are not limited to, the ability to
complete the planned initiatives in the time estimated, the success of on-
going cost-management programs and shifts in market demand for the company's
products.
SOURCE Brunswick Corporation
CONTACT: Kathryn J. Chieger, Vice President - Corporate and
Investor Relations, of Brunswick, 847-735-4612
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